How to fill out an SBA loan forgiveness application

Key Takeaways

Use Form 3508S if your PPP loan was $150,000 or less—it's the simplest option, requiring only basic information about your loan and spending, plus your signature and initials for certification.
Keep documentation on hand, even though it’s not required to submit with the form—payroll records, tax filings, utility bills, lease agreements, and other receipts may be requested by the SBA.
Apply within 10 months of the end of your covered loan period to avoid repayment, and retain all records for at least six years after forgiveness or repayment, as the SBA may audit.

Small businesses that received a loan through the U.S. Small Business Administration’s (SBA) Paycheck Protection Program (PPP) can apply for loan forgiveness using one of three forms.

Of the three forms, SBA Form 3508S is the simplest and easiest to complete and requires less documentation than the other versions.

In order to qualify for forgiveness, the small business would need to have spent the funds on qualifying business expenses and be able to provide documentation.

Learn more about how to fill out an SBA loan forgiveness application, including required documentation and qualifications for forgiveness below.

Page written by Kat Cox. Last reviewed on May 9, 2025. Next review due October 1, 2027.

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What is the SBA 3508S form?

The PPP loan forgiveness application form 3508S is the form that small business owners can use to apply for forgiveness for PPP loans of $150,000 or less.

There are three forms that borrowers can use to apply for PPP loan forgiveness:

Form 3508
Form 3508EZ
Form 3508S

SBA Form 3508S is the simplest of these forms. Unlike the other two forms, SBA Form 3508S does not require multiple calculations or supporting documents. Instead, you’re required to provide the amount of money you spent on payroll and how much you’re asking to be forgiven. Then you simply sign and initial the form to certify the conditions.

Who can use form 3508S?

Any PPP borrower who took out $150,000 or less from the program can use the SBA form 3508S to apply for loan forgiveness. This includes contractors, corporations or other entities. If your small business, including any affiliates, borrowed $2 million or more, you will not be able to use SBA form 3508S.

What needs to be submitted as part of the 3508S form?

While Form 3508S does not require any specific documentation, the SBA may request verification to approve loan forgiveness. There are several ways that you can verify that your organization spent the loan funds on qualifying business expenses.

Verified payroll expenses

In order to verify that your company spent the PPP loan funds you want to have forgiven on payroll expenses, you may be asked to provide:

Bank statements
Documentation from your payroll company showing payments to employees
Reported payroll tax filings (Form 941)
State quarterly wage reporting for businesses and individuals
Tax filings for unemployment insurance
Employer contributions to group employee benefits (payment receipts, canceled checks of bank statements)
Equivalent payroll provider reports for the above

Verified non-payroll expenses

Because PPP loans could be used to cover payroll or other qualified business expenses, the SBA may ask that you include documentation of those expenses when using Form 3508S to apply for forgiveness. These expenses may include:

Business mortgage interest payments
Business rent or lease payments
Utility payments for the business, including internet, electricity and gas
Certain operations expenditures
Certain supplier costs
Property damage costs, if covered
Worker protection expenditures, if covered

The types of documents that may provide proof of these expenses during the covered timeframe include:

Invoices
Amortization schedule and receipts
Mortgage statements
Rent or lease agreements with receipts
Contracts, orders or purchase orders

What time frame do I need to maintain documents for PPP loan forgiveness?

The SBA can request that you provide documentation for your loan forgiveness up to six years after you apply for it. This means you should keep records for six years after your PPP loan is forgiven or paid off. These records can include:

Payroll reports
Non-payroll receipts
Tax documents

When can I apply for PPP loan forgiveness?

There’s currently no set deadline for applying for loan forgiveness. However, once your covered loan period ends, you have 10 months to apply for forgiveness before you have to start repaying the loan. If you don’t want to pay monthly payments, you should apply as soon as you can.

Your lender will probably reach out to you regarding loan forgiveness, but it’s a good idea to talk to your lender about it if you have any questions. Most PPP lending institutions have online resources as well.

How will I know how much of my loan is forgiven?

Depending on whether or not you spent the loan money in line with the SBA’s requirements and are able to provide proof, your lender may decide to forgive all of the loan or a portion of the loan. They may decide that they won’t forgive any of your PPP loan if they determine it was used for non-approved purposes. The lender will let you know how much of your loan they have decided to forgive. You may be able to appeal the decision as well, if you have the right documentation and proof.

How long does it take to get a decision?

No matter which form you use to apply for forgiveness, your lender will have 60 days to review your application. After they make their initial decision about how much of your loan (if any) they are going to forgive, the SBA will take over for a final review. This SBA review can take up to 90 days, and they may ask you for more documentation or information during this time.

Once reviews are finalized and the SBA confirms your forgiveness, the lender will contact you with the results.

How Swoop can help

The PPP loan program ended May 31, 2021, but there are still programs available to help small businesses find funding. Download the Swoop app to find loan and funding options that are right for your business. Simply answer a few questions in the app and we’ll help you find funding based on your qualifications and needs.

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